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Chapter 13

RSM 100 - Chapter 13 - Summary Notes

Rotman Commerce
Course Code
John Oesch

of 2
RSM 100Y Chapter 13: Increasing Productivity and Quality
Data = Raw Facts and Figures
Information = Meaningful interpretation of Data
Information System
Process of turning data into information which is useful to lots of people.
Electronic Information Technologies
1. Provides coordination and communication within the firm
2. Speeds up transactions with other firms
Group Ware – System that allows people to communicate between PCs
Internet = 170,000 Networks World Wide
An internal private network within a company that allows for communication
Extranet = Limited External Access to internal network
Benefits of Technology
Leaner Organizations = Information Based automated service
Mass-Customization = Large volume of products with choice of features
Increased Collaboration = Telecommunication
Existence of a Virtual Company = All based online, no office needed
Increases independence of workers and company (Telecommuting)
Increases Management Efficiency = Access to all information at all times
Enterprise Resource Planning = Large information system with all activities
User Groups and System Requirements
Knowledge Workers = Workers who’s raw materials is information
Engineers, scientists, Psychologists
Top Managers = Strategic Information System
Mid-Managers = Management Information System
Knowledge Workers = Knowledge Information System
First-Level Managers = Operational Information System
Transaction Processing Systems
Application of Info processing for day-to-day business operations
Types of Workers
IS Knowledge Workers
Systems Analysts – Work with users to learn and satisfy their needs
Programmers – Write software to tell PC what to do
Operations Personnel
People who run computer equipment and ensure proper operation of them
Computer Aided Design (CAD)
Computer program to help design new products virtually
Computer Aided Manufacturing (CAM)
Computer program to help physically create things from CAD designs
Decision Support System (DSS)
Helps managers consider all options when tackling hard problems
Executive Support System (ESS)
Helps Top Managers make decisions, mainly based in forecasting
Artificial Intelligence - Computer simulates real human life
Expert System = AI that follows rules set by an expert in a field
Robotics – Computer controlled machines do tasks
Encryption – Encodes messages to prevent privacy invasion